JPMorgan’s London head slams ‘greed’ of bankers

The guilty men: Bill Winters has laid the blame for the global financial crisis squarely on those in the City and Wall Street

One of the most senior investment bankers in London has weighed in on the controversy over pay in the industry, attacking City and Wall Street employees as "greedy" and "inept".

Bill Winters, the co-chief executive of JPMorgan's investment banking arm, laid the blame for the financial crisis squarely on the shoulders of his fellow bankers.

"The crisis is about the collapse of the integrated wholesale banking system. The primary culprit was a wholesale banking market where borrowing was made to the wrong people at the wrong price," he told a debate hosted by the Investment Management Association.

Winters, an American who is seen as being close to JPMorgan boss Jamie Dimon, is regarded as a likely future leader of the Wall Street bank.

He said the banking crisis was caused by "greedy bankers, investors and borrowers" and "inept risk managers who relied on the rating agencies".

His comments come as world leaders from the G20 move closure to agreeing collective legislation that would outlaw bonuses seen as excessive.UK Chancellor Alistair Darling is also likely to push for greater transparency on pay, demanding the names of top earners are disclosed.

Winters's remarks follow a speech by Goldman Sachs chief Lloyd Blankfein three weeks ago in which he said multi-year guaranteed bonuses should be banned, while the clawbacks to recoup bonuses from loss-making deals should be introduced.

Blankfein said that much recent "controversy and anger" over the size of bankers pay is "understandable and appropriate".

However, a survey of bankers out today shows they are sceptical that the G20 proposals will make the financial system any more stable. A report from jobs website eFinancialCareers.com shows that 47% of bankers think the reforms won't have any effect. The bankers surveyed agree pay will have to come down, but don't expect their own rewards to be reduced this year, with 88% saying that any impact will only become apparent in 2010.

John Benson, founder and chief executive of eFinancialCareers.com, said: "Financial professionals in Londonat present are split as to whether the proposed changes can make the banking system any more stable in the future. Likewise, few see any immediate impact on their own compensation levels in the coming months."

Darling will ask bankers to crack down immediately on bonuses, rather than waiting for legislation to be brought in.

In a speech to this week's Labour Party conference in Brighton, Darling will say: "Let me assure the country — and warn the banks — that there will be no return to business as usual for them. In the next few weeks we will introduce legislation to end the reckless culture that puts short-term profits over long-term success."